ALTERNATIVE LOANS

Alternative education loans are private loan programs offered through banks for the
purpose of supplementing a student's financial aid package.

They are not federally endorsed or guaranteed, but they must be certified by the Financial Aid Office to
ensure that the loan does not exceed your cost of attendance budget minus all other
financial aid.

Most alternative loan funds are disbursed in two installments and applied directly
to your account.

We encourage you to explore all of your Federal Direct Student Loan and Federal Direct
Parent Loan options first.

Alternative Loans are based on credit worthiness and in most cases require a credit
worthy co-signor. Alternative Loans interest rates, fees charged, repayment terms
and repayment benefits vary between lenders.

WHERE CAN I FIND A LOAN?

FINAID!, "a public service website", will help you learn more about Alternative Loan providers. Remember to call lenders, research their websites and ask questions. Do your homework so you can make an informed decision.

Tips for Selecting an Alternative Loan Provider

As you may know, there are different student loan providers from which to choose.
The Financial Aid Office encourages you to carefully evaluate and research the terms offered
by the lenders to ensure the best possible term for your personal circumstances. Treat
the importance of these loans the same as you would for any loan (car, mortgage, etc.)
you were to consider. Call the lenders, research their websites and ask questions.

Consider the following when choosing a lender:

Origination fees

Repayment fees

Interest rate - Adjustable vs. fixed

Borrower based benefits - Be aware that loan terms can change yearly and repayment benefits are dependent
upon specific borrower behaviors. Therefore, in order to retain borrower behavior
based benefits, such as reductions for paying by auto debit and/or reductions for
specified number of on time payments, you would need to specifically follow the loan
terms in order to receive the benefit.

Auto debit interest rate reduction at repayment

Interest rate reductions with a certain number of on-time payments

Principal reductions at origination and/or at repayment late payment forgiveness

Federal default fee paid by lender/guarantee agency

Ability to regain benefits if you lose them due to a missed payment or lack of funds

Customer Service - When selecting a lender, it is important to consider the lender's level of customer
service.